If you’re a successful business owner in your 50s or 60s, there’s a storm on the horizon and it’s not an economic one. It’s demographic.
According to the Exit Planning Institute’s State of Owner Readiness Generation Report, over half of privately held businesses in America are owned by Baby Boomers and GenX’ers. Are you one of them? Within the next decade, millions of these owners will be looking to retire or transition out. This tidal wave of exits, what many are calling The Silver Tsunami, is about to reshape the private business marketplace in a massive way.
And like any wave, the question isn’t if it’s coming. It’s whether you’ll be ready when it hits.
The Calm Before the Wave
A business owner recently told me, “Pete, I’m not ready to sell yet. Maybe in three to five years.” Many call this the “Perma 5”, that permanent rolling five-year period business owners often throw out there when asked about their timeline.
My reply? “That’s fine, but will the market still be ready for you in five years?”
That’s the question many haven’t asked themselves and you might be so “in the weeds” of running and growing your business that it’s hard to look too far down the road.
But right now, we’re in the calm before the wave. It’s a moment where supply (businesses for sale) is still relatively low, and demand (buyers with capital) remains strong. But when millions of other owners decide it’s finally their time to exit, that balance will shift quickly.
Too many sellers and not enough buyers means lower valuations, longer sale timelines, and more selectivity from acquirers. The businesses that will command premium prices are the ones that have prepared early, with documented systems, transferable leadership, and a clear value story.
The Coming Supply-and-Demand Shift
Every market is driven by supply and demand and the exit planning marketplace is no different.
Private equity firms, strategic buyers, and internal successors will all have more options in the years ahead. They’ll be more discerning about what they buy and at what price as the balance shifts.
That means two owners with similar financials could see drastically different results:
The unprepared owner who waited too long may have to accept a discount or worse, can’t find a buyer at all.
The prepared owner who began planning today will be in control — choosing when and how to exit, often at a much higher multiple.
If you want to be in that second group, preparation is the price of admission.
The Unprepared Majority
According to the Exit Planning Institute, more than 80% of business owners don’t have a written exit plan and roughly 75% of their wealth is tied up in their business.
Most intend to “get to it someday,” but someday often turns into too late. I’ve seen owners lose key employees, experience burnout, or face health issues that force them into rushed decisions, eroding value they spent decades building.
The end result was a lifetime of work sold under pressure instead of purpose.
The Prepared Minority Wins
The good news is it doesn’t have to be that way for you.
If you begin preparing today, or at a minimum, three to five years ahead of your desired exit date, you can:
Shape and grow your company’s value instead of simply discovering it.
Build a leadership team capable of running the business without you.
Design a tax-smart strategy for how and when you sell.
Clarify your personal vision for life after the sale — purpose, lifestyle, and legacy.
At Horizon Financial Group, we custom design our process called The Confident Wealth Experience for Business Owners to each client’s situation, and it helps business owners like you align your business readiness with your personal readiness, so when opportunity knocks, you’re ready to open the door.
Because when it comes to your life’s work, “winging it” isn’t a strategy.
Don’t Wait for the Wave to Hit
In Louisiana, we know all about storms and we watch the weather radars like hawks. The Silver Tsunami is already forming offshore. It will create extraordinary opportunities for those who prepare early and challenges for those who don’t.
So the question is simple: Will you ride the wave or get swept up in it?
If you’d like to understand where your business stands today, start with our Value Readiness Conversation. A short conversation now could save years of uncertainty later.